The Car Finance scandal emerged after a 2019 report by the Financial Conduct Authority revealed widespread mis-selling practices across the car finance industry. Concerns where raised regarding several several issues related to mis selling by lenders, such as:
Undisclosed commission payments to brokers/dealers & Manipulation of interest rates 'DCA' (discretionary commission models)

DCA or Discretionary Commission Arrangement (DCA),

Arrangement between lenders and brokers which allowed the broker to adjust the interest rates offered to customers. In return, for a higher interest rate, the broker would usually earn a bigger commission.

Example: Individual A visits their local Car dealership. When purchasing the vehicle they opt for a finance arrangement, HP or PCP.The lender has set a base rate of interest at 4%, the dealer may decide to raise this to 12%.

In some cases, dealers would receive 70% of the increased interest in commission.  This small increase may seem minimal of the face of things. However, this can cause a significant increase in the customers total amount payable

The FCA estimates 95% of car finance deals had a commission model, and 40% had the crucial 'discretionary commission arrangements'

If you financed a vehicle between 2007 and 2021, you may be eligible to file a claim related to undisclosed commissions. Upon submitting your claim, the car lender will assess whether you are affected by this issue.